California gas prices are the highest in the U.S., but there's no proof of price gouging. Here's why.

Key Points:

• A six-month CBS News California investigation found that high gas prices in California are driven by a combination of state taxes, environmental regulations, refinery closures, and reliance on overseas refining, rather than illegal price gouging by oil companies.
• California drivers pay the highest gas prices in the nation, often exceeding $6 per gallon, due to unique state costs such as a special fuel blend, cap-and-trade, low carbon fuel standards, and high state taxes.
• Two major California refineries have shut down recently, reducing in-state refining capacity by nearly 20%, which has increased reliance on Asian refineries that produce California’s special blend but contribute to supply delays and environmental concerns.
• After a taxpayer-funded investigation and special legislative session, state officials found no evidence of illegal price gouging, leading to a political shift where leaders now focus on incentivizing oil companies to maintain refining operations in California.
• The ongoing challenge for California is balancing ambitious climate goals with the need to keep fuel supply stable and affordable, especially as global conflicts and local policies influence fuel prices and availability ahead of upcoming gubernatorial elections.